Employment Law Topics – TUPE
This page is designed to provide some advice and guidance to business owners and managers regarding the TUPE regulations – the Transfer of Undertakings (Protection of Employment) Regulations 2006.
This is a complicated subject and if you would rather call for help and advice with specific questions regarding TUPE call us on 01543 308642 or email us at info@creamhr.com and we’ll try to answer your specific question. We have considerable experience of successfully dealing with TUPE transfers for business.
This is one of those areas of HR & Employment Law that for some reason lots of people seem to dislike. TUPE – pronounced “tewpee” – stands for Transfer of Undertakings (Protection of Employment) Regulations 2006
In a nutshell TUPE allows contracts of employments and their associated rights to be transferred from an employer to a third party, which would not ordinarily occur via contract law. If you enter into a contract with a party then it is that party who you have an agreement with. Without TUPE if the employer sells or passes a business to a third party then the employees would, according to contract law, not be employed by the incoming party.
TUPE amends this and states that if an economic entity is transferred that it’s employee’s transfer with it. This has caught people out on many occasions, especially in the case of those who assumed that there would not be a transfer of staff when acquiring a business.
The other scenario to consider is what occurs when a business enters into administration. It could be assumed that the staff would not transfer to any incoming parties. This is not the case. In many situations regarding administration, especially ‘pre pack’ administrations, staff will generally transfer to the incoming business who is taking over. Cleaning contractors have been caught out on many occasions by taking over a cleaning contract for say a public building or school they have assumed that they would be entitled not to use cleaners who were employed by the outgoing contractor. This is not the case and often causes serious complications and has been the subject of many reported legal cases.
If you are subject to TUPE then there are certain rules to follow such as consultation with staff, whether you are the outgoing party or incoming party to a business. You are obliged to honour their existing terms and conditions of employment and if you are unable to do so then you must be prepared to put forward a bona fide economic, technical or organisational reason why not. This could be tested at Employment Tribunal and if it is held that the employee concerned was dismissed due to a TUPE transfer without a justifiable defence then the employee will be held to have been automatically, unfairly dismissed.
TUPE is a veritable hot bed of legislation and Employment Tribunal claims – ensure you are prepared and avoid any potential expensive claims against you.
If you have any questions regarding TUPE Regulations for your employees, call us on 01543 308642 or email us at info@creamhr.com and we’ll help to answer your specific question.
DISCLAIMER – should you decide to use any of the information provided on this site without our expert guidance, you do so at your own risk.
Almost every employment/employee related situation is unique and as such it is always wise to seek specific expert advice before undertaking any action.
